How to read forex quotes?
Brokers usually give you two quotes for each currency pair or instrument: the bid (the exchange rate at which the broker is willing to buy from you), and the ask price (the exchange rate at which the broker is willing to sell to you). In other words, you can sell at the bid price and buy at the ask price. The ask price is usually higher than the bid. The difference between the bid and the ask is called the spread, and it represents the broker’s profit. For you as a trader, the spread and the commission are transaction costs, and you need to consider them when preparing your trading plan.
For example, in the quotes above, you can buy EURNZD for 1.83422 and sell it for 1.83373. The buy price is the ask price, and the sell price is the bid price. In this example, the pips (37 and 42) are shown in a bigger font. The small numbers (3 and 2) represent a tenth of a pip each.
You can find price quotes at the upper left corner of the chart in almost all platforms.
For example, in the quotes above, you can buy EURNZD for 1.83422 and sell it for 1.83373. The buy price is the ask price, and the sell price is the bid price. In this example, the pips (37 and 42) are shown in a bigger font. The small numbers (3 and 2) represent a tenth of a pip each.
You can find price quotes at the upper left corner of the chart in almost all platforms.